AutoNation Reverses Recall Policy

Source: autonation.com
Source: autonation.com
AutoNation, one of the nation’s largest automotive retailers, has been slowly reversing its policy to not sell,  lease or wholesale any used vehicle that has an open safety recall, according to a report from Automotive News. That policy was put in place in September 2015.

However, by the end of 2015, the company started to allow some recalled vehicles to be sold at wholesale auctions, if the lack of replacement parts meant the vehicle would be grounded for at least six months, according to Automotive News.

After the election, assessing the effects of the Takata airbag recall on sales, AutoNation began retailing used vehicles with recalled parts.

CEO Mike Jackson stated, “Conclusion: It is the way it is. Learnings: We still identify repairs or disclose. We're at a better place than we were when we started, but it's not everything we hoped it would be.”

Read the full story on Automotive News.

 

Comments

  1. Jason Manelli [ December 7, 2016 @ 08:24AM ]

    Someone needs to explain to me why it's a good thing again for us in the car rental business to be the ONLY entities forced to hang on to these recalled units!

    AutoNation's move to back away from this policy is a clear signal that any prospect of Federal legislation aimed at used dealers and auctions is DOA.

    Meanwhile, I know of rental operators that are looking at grounding 30%+ of their rental units, and having to decide between breaking the law or closing the business.

    As car rental operators, we have been singled out as the only industry that can't sell, can't rent and we can't collect loss of use from the manufacturer while we ground cars for parts that are months away from being made available, while new car dealers, used car dealers, auctions, Uber, Lyft and Taxi drivers and private owners can are under no such restrictions.

    We need to all work together under the banner of ACRA to get this law changed or repealed.

  2. Nick Mariano [ December 8, 2016 @ 02:18AM ]

    It's discrimination against small Rental Car operators. The Mega Car Rental Companies got together and came up with this idea to put smaller operators out of business lessening their competition.
    Rental Fleets make up less than 5% of all cars in the US. What's being done with the other 95% of vehicles with recalls?
    For example. Are recalled vehicles that the Mega Rental companies are leasing long term to Businesses being grounded? Answer NO. It's DISCRIMINATION!! The Recall system and Recall law are broken and need to be fixed.

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